Revision and Audit
Ordinary and restricted control
There is an ordinary control duty for public companies and large companies, while smaller companies are subject to restricted control. Very small entities can even renounce an audit under certain terms and conditions.
Companies subject to ordinary control must implement an internal control system (SCI). The auditor is also obliged to submit to the Board of Directors a detailed report which should comply with specific rules.
As a trusted partner, we assist you willingly in these fields and tasks.
We carry out audits throughout Switzerland in French, German or English.
In the exercise of our authority we are interested :
- to provide you with a reliable report, independent of the company’s financial situation.
- to identify any possible optimization and to undertake appropriate measures.
- to issue reports that can serve you as a reference in future negotiations with business relations, with a bank, etc. The image of your business is also reinforced by your ability to present professional financial statements.
- to verify that the company meets its statutory requirements.
- to give an independent opinion regarding the company’s internal control system (SCI) if required by the legal framework.
The security of equities and the protection of creditors are of particular importance in Switzerland.
We are perfectly familiar with the requirements relating to equity transactions and restructurings, and as consultants, we offer you our assistance in this field.
As auditors, we control your capital transactions. You are also provided with the insurance in observance of statutory provisions, and whenever required, in observance of other special, more coercive rules.
We also strive to ensure that transactions are duly registered and approved by official authorities.
Verification during the foundation or during a qualified capital increase:
- Contribution in material values
- Reinstitution of actual or specified property
- Debt redemption by indemnity
- Special benefits (founder’s shares)
- Conditional capital increase
- transfer of property
Verification during the decrease in capital:
- capital reduction with reimbursement of shares
- capital reduction without reimbursement of shares (usually in the context of business recovery)
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Accounts according to RPS/IFRS
Companies operating internationally, must currently present their accounts according to recognized standards. Indeed, IFRS standards (International Financial Reporting Standard) is the most widespread on the international level.
We are aware of problems relating to the application of IFRS standards (including IFRS for PME). We constantly monitor developments in the area of IFRS standards and prepare comment letters on consultancy projects.
It is also required in Switzerland to apply IFRS standards in order to get permission to the “Main Standard” quotation of SIX Swiss Exchange.
Non-listed companies will have to resort to IFRS standards for PME.
Second-tier market companies must meet RPC recognized standards.
We offer you the following services in IFRS, IFRS for PME and services according to RPC
- Review of individual financial statements and consolidated financial statements
- Control of Reporting Packages
- Specialized assistance in the preparation of ordinary annual accounts and intermediate balance sheets
- Complete or partial establishment of consolidated financial statements for unaudited clients
- Transition from CO or RPC standards to IFRS or IFRS for PME (or vice versa)
- Support in your transitional project
- Development of guiding principles and reporting structures
- Assistance in interpretation and practical implementation of specific aspects of IFRS
- Purchase price allocation (PPA), fair value measurement and depreciation testing as an independent third party
- Expertise and second opinion
- Writing of publications
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Adaptation to recognized accounting standards (Swiss GAAP RPC, IFRS)
Although IFRS standards have been firmly set in Switzerland and in Europe for years, there are still many reasons to proceed with the modification of account statements. That a previously unregistered company aims at initial public offering, that banks promote the presentation of transparent account, that a group aims at more internationalization or a repurchase by a new partner (notably via international groups, private equity companies).
If you decide to proceed with a conversion of your account’s statement, we will assist you to identify the material differences in terms of accounting, to plan the conversion process, to make memos about accounting as well as calculations of adjustment amounts, to establish annexes, to train your staff and to develop accounting manuals as well as financial reports.
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SCI System of Internal Control
Internal control techniques are strongly influenced by the practice of auditing. In fact, as auditors, we have to ascertain risk situation and offer you recommendations in order to reduce them. The purpose of the audit is therefore to reduce the risk level in order to obtain reasonable insurance of proper functioning of the auditing process.
To perform this work, we base our approach on our knowledge of the objectives of the control of audit. These objectives are based on the knowledge of good practices. They are the basis of the rules of internal control that must be verified. The audit is therefore at the core of any internal control procedure. We will therefore ensure that the internal control rules are really applied and give the expected results.
MLA revision (law against money laundering)
The fight against money laundering is mainly regulated by the “Federal Law against money laundering and financing of terrorism in financial sector (law against money laundering – MLA)”.
All financial intermediaries such as banks, insurance companies, casinos, investment companies, security brokers, etc. are subject to this law.
Persons who are in a professional capacity accept, keep on deposit or help to place or to transfer heritage values belonging to third parties (including notaries, lawyers, fiduciary companies if they practice this type of activity) are also subject to this law by assimilation.
The law mainly stipulates the obligation of identification of the contractor and the beneficial owner, the obligation to keep the documents, to train employees of the financial intermediary, to report suspicious cases and to freeze the assets. In addition, every person subject to the law is related to a regulation and control board.
- Clients rarely take measurements of the complexity of the fraud risks facing their organization and assess neither the conformity of their management frameworks nor their net exposure to identified risks.
- The staff who is not informed about the actions to be taken in case of discovering or suspecting a fraud may report or handle it inappropriately.
- Insufficiently preventive, the control frameworks give criminals the possibility of committing fraud which in the absence of detection control can last a long time before being arrested.
- The level of fraud increasing during economic recession, the low rate of fraud reporting suggest that fraud detection mechanisms are not sufficiently effective.
- The changes within the organization (such as acquisition, dismissal) may lead to the disruption in the control environment which can be exploited by the fraudsters
- If a client evolves in a regulated industry or a sector, the detection of fraud may result in increased attention by the regulatory authority (and therefore in a waste of time) and in a multiplication of the number of documents to be produced
- To facilitate the tasks of interactive assessment of fraud risks to map, quantify and train key participants about the risks faced by the organization and the ways to prevent them
- To map key controls in areas of interests and to verify the implementation of preventive and detection control frameworks serving to mitigate risks (including ongoing monitoring of control and the use of other technological solutions).
- To develop coordinated strategies, frameworks, policies and procedures to fight against fraud
- To provide fraud awareness trainings (face-to-face or online) for the Board of Directors, audit committees, management, and employees
- To evaluate the efficiency of fraud awareness program used by a client through online surveys
- To advise on effective methods of fraud prevention
- To analyse data in order to undertake 100% control of key systems and data
- To conduct targeted surveys together with Forensics services and in accordance with existing standards
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